Jakarta, CNBC Indonesia – The United States (US) stock market rose at the opening of trading Thursday (14/10/2021), following the release of the financial performance of Bank of America and other bank giants.
The Dow Jones Industrial Average jumped 340 points (+1%) at 08:30 local time (20:30 GMT) and within 30 minutes to 353.9 points (+1.03%) to 34,731.67. The S&P 500 index grew 50.4 points (+1.15%) to 4,414.16. The Nasdaq added 186.8 points (+1.28%) to 14,758.42.
Shares of Bank of America, Morgan Stanley, Citigroup and Wells Fargo all rose in the pre-opening session after releasing better-than-expected performances. Shares of issuers of crude oil also rose following the surge in prices of the world’s main commodities.
Lower weekly jobless claims also helped strengthen market sentiment, where last week’s claims figure was 293,000, the first time below the 300,000 level during the pandemic.
On the other hand, the producer price index as of September was lighter than expected, helping to improve sentiment. Simultaneously, the Covid-19 figure continues to decline, with the last 7-day average at 86,181, lower than the 161,000 average in September when it was still at its peak.
On Wednesday, the Dow Jones index closed flat at 34,377.81 while the S&P 500 grew 0.3% while the Nasdaq added 0.7%.
Inflation in September in the US recorded a growth of 0.4% on a monthly basis and 5.4% on an annual basis, or higher than economists forecast in a Dow Jones survey that forecast growth figures of 0.3% on a monthly basis and 5.3% on a yearly basis.
Core inflation recorded an increase of 0.2% on a monthly basis and 4% on a yearly basis, or relatively the same as forecast which ended up at 0.3% and 4%, respectively.
Meanwhile, the minutes of the meeting of the US central bank (Federal Reserve / The Fed) last September showed that the central bank could start the process tapering (reduction of monetary stimulus for the capital market) in mid-November or December.
“We’re still thinking November but a month isn’t going to affect the market at this point,” said Lawrence Gillum, investment planner at LPL Financial. CNBC International.
CNBC INDONESIA RESEARCH TEAM
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